Me on the left at the Paradox Fan Gathering (I work at Paradox Development Studio as their AI programmer nowadays) a few months ago, having beers and talking about animes with one of our project leads. My beard has since grown more magnificent, but I don't have any recent pictures.
Looking good! One glance at the UI makes me think I'll need to begin playing at a higher resolution just to accommodate all the windows without losing my whole field of view. (The "extended targets" window has me the most excited!)
Just how much can we expect to see when it comes to reassigning *old* held items new models? I mean apart from the inevitable changes for generic daggers, generic short swords, etc. There'll be scores of wands, swords, shields, and more that Dalaya hasn't yet been graced with which could allow much greater differentiation when it comes to groups of items that "overuse" the same model (e.g. Crystalis and Thurgadin bounty staves and Azakiael's Focus and Staff of the Lost Sky). Of course, the coolest new held item models will probably be reserved for future content, but it couldn't hurt to ask.
I think assigning new models to things will probably come later, though the rest of the team is free to correct me on that. Maybe someone has already begun work, though with things in so much flux I'd be a bit surprised.
But yes, there are TONS of new models to work with, and I know one of the things we talked about early on was what those models could bring to the table. The additional differentiation will indeed be welcome.
At some point, once we get a few more features rolled in, I'll sneak some pics of some of the new models. It should be noted that it's not just items - MOBs also are much more diverse! But changing everything in the current world to make use of this new content is also a pretty substantial task, one that I'm fairly certain will occur later in the 3.0 cycle.